US-based global luxury lifestyle brand Michael Kors Holdings Limited has announced results for its third quarter ended December 31, 2016. In the period under review, the retailer’s revenue decreased 3.2 per cent to US $ 1.35 billion from US $ 1.40 billion in the third quarter of prior fiscal. On a constant currency basis, total revenue dropped 2.6 per cent.
As per the company’s release, retail net sales during the reporting quarter increased 9.2 per cent to US $ 836.7 million driven primarily by 193 net new store openings since the end of the third quarter.
Region wise, total revenue in the Americas and Europe declined while Asian revenue zoomed 89.1 per cent. The growth was driven by recent acquisitions of previously licensed operations in China and South Korea regions.
On a constant currency basis, retail net sales increased by 10 per cent for the fashion brand; however, comparable sales decreased 6.4 per cent. Wholesale net sales also down surged 17.8 per cent to US $ 473.1 million and on a constant currency basis, wholesale net sales plunged 17.5 per cent. Licensing revenue too fell 22.9 per cent to US $ 43.0 million.
John D. Idol, Chairman and Chief Executive Officer of the company said, “During the quarter, we delivered earnings per share results that were in line with our expectations and we continued to focus on our growth pillars, which are cantered on consistently delivering innovative fashion products for our customers and enhancing consumer engagement with the Michael Kors brand worldwide. We also saw great consumer response to our new digital flagships in Europe, and are excited to further expand our omni-channel presence as we deepen our relationship with consumers globally.”
